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What does conservatorship mean? What is a conservator? A brief definition of “conservator” would be “someone with legal responsibility for another person’s affairs.”
Conservators are usually appointed when a person is unable to care for themselves. But there’s more to it than that.
In this article, you’ll learn:
Let’s start with the basics.
Conservators are court-appointed individuals who are given the ability to manage another person’s finances and personal affairs. They’re able to limit the conservatee’s spending and, depending on the extent of the conservatorship, any other financial and personal decisions.
Typically, the conservatee is incapacitated in some way or a minor legally incapable of making these decisions. It’s the duty of a conservator to manage their conservatee’s affairs to the best of their ability, including arranging for:1
It should be noted that the term “conservator” may not be used in every state jurisdiction. For instance, in Illinois, the Probate Act was amended in 1979 to allow a “guardian of the estate” to manage the affairs of an incapacitated individual.2
In other states, conservators are called “trustees.” Although the terms and state laws around them differ, conservators and their local titles generally have the same legal function.
Broadly speaking, there are two types of conservatorship: individual and corporate.
Individual conservatorships appoint one person as the conservator over another. This is similar to a guardianship. In fact, one person can be both conservator and guardian.
Corporate conservatorship places a corporation or organization under the management of a regulating body, usually a government office. The conservator oversees management of the corporation or organization for a temporary amount of time.
This usually happens when a company becomes insolvent and unable to function. The conservator may take steps to ensure legal business practices and procedures are in place, including a complete reorganization of the executive board.3
Conservators and guardians differ in their duties. A guardian’s main responsibility is the physical and medical care of their appointed individual. Conservators must see to the personal and financial aspects of the conservatee.
Courts mandate a conservatorship when an individual is incapacitated in some way. A mental health conservatorship is required when someone suffers from a mental disability, such as dementia, which prevents them from making sound financial and personal decisions.
Other situations that might demand a conservatorship include:
Before a conservatorship can be ordered, the potential conservatee must undergo rigorous mental examination to determine if they’re actually incapacitated. Medical professionals, including psychiatrists and physicians, are required to provide verifiable documentation of diagnoses. Courts will only appoint a conservator once the case has been clearly made.
Similarly, the conservator must provide thorough documentation of how they’re managing the conservatee’s money and personal affairs. These documents are carefully scrutinized by the court.
If the conservator is found to be abusing their position, the conservatorship may be revoked. Conservatees are also able to sue for the removal of the conservatorship if they feel they’re being mistreated or that the conservatorship is no longer required.
Conservatorship can be avoided in certain situations through legal planning. When pertaining to a minor, there are measures one can take to protect their financial affairs until they come of age, including:
Finding yourself in a situation that may require conservatorship can be overwhelming, especially when it comes to end-of-life planning. Fortunately, it’s not something you have to face alone. Whether you want to review your options or plan ahead, there are legal experts who can help you navigate the process.
Legal plan workplace benefits can connect you with a network of attorneys. Ask your employer if they offer legal plan benefits to help take the stress out of your financial planning.
1 “Conservatorship Definition,” Investopedia
2 “What Is A Conservatorship?,” Estate and Probate Legal Group
3 “History of Fannie Mae & Freddie Mac Conservatorships,” Federal Housing Finance Agency
4 “Your Special Needs Trust (‘SNT’) Defined,” Special Needs Alliance
This article is intended to provide general information about insurance. It does not describe any Metropolitan Life Insurance company product or feature.
Group legal plans are administered by MetLife Legal Plans, Inc., Cleveland, Ohio. In California, this entity operates under the name MetLife Legal Insurance Services. In certain states, group legal plans are provided through insurance coverage underwritten by Metropolitan General Insurance Company, Warwick, RI. Payroll deduction required for group legal plans. For costs and complete details of the coverage, call or write the company.